Blackstone nets 9.8 billion euros for Europe property during crash
The final close on the latest European fund boosts the firm’s capital to US$47 billion across three opportunistic real estate funds
Blackstone has raised the largest ever pool of external capital for a European real estate fund, narrowly surpassing its own previous record against the backdrop of a severe property market correction.
The private equity firm hauled in 9.8 billion euros (US$10.8 billion) for Blackstone Europe Real Estate Partners VII after a two-year fundraise that took place as asset values plunged in response to the end of ultra-low interest rates.
The fundraise, which officially kicked off in February 2023, came during “a period of exceptional dislocation in the industry, particularly in Europe,” Blackstone head of European real estate James Seppala said. “The real estate recovery is coming into view and we are grateful that our limited partners have entrusted us with substantial capital.”
The final close on the latest European fund means the firm now has US$47 billion of capital available across its three main opportunistic real estate fund series, according to a statement on Wednesday (Apr 9).
The opportunistic funds, those targeting the highest returns on the riskiest real estate bets, also include vehicles for Asia and a global fund that predominantly invests in the US while co-investing alongside the other vehicles.
Fundraising has been decimated by the correction, as investors grappled with falling values, an over-allocation in real estate caused by declines in other asset classes and a lack of capital being returned by managers reluctant to sell into a falling market. Fundraising fell 22 per cent in the first nine months of 2024 even after plunging the previous year as higher rates took hold, Preqin data show.
SEE ALSO
Blackstone has already begun investing the fund, targeting warehouses, residential properties, data centres and hotels while also beginning to explore deals for offices again after a long hiatus. The vehicle has invested in a vast data centre development in the north of England and backed the buyout of Village Hotels.
The latest fund has about the same amount of money as its predecessor but includes a larger proportion of external capital raised from investors. BLOOMBERG
Share with us your feedback on BT's products and services
